How to compete effectively against low-cost competitors

Business Horizons

Volumn 58, Issue 1, 2015, Pages 87-97

  Berman, Barry ^a  

^a HOFSTRA UNIVERSITY   (United States)

Author keywords

Business strategy; Entry barriers; Fighter brand; Fighting brand; Good enough products; Low cost competition; Price competition

Indexed keywords

EID: 84920627226     PISSN: 00076813     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.bushor.2014.09.002     Document Type: Article

References (36)

1. ACSI. (2014). Benchmarks by industry: Airlines. Retrieved March 4, 2014, from http://www.theacsi.org/?option=com_content&view=article&id=147&catid=14&Itemid=212&i=Airlines. http://www.theacsi.org/%3Foption=com_content%26view=article%26id=147%26catid=14%26Itemid=212%26i=Airlines.
2. Anthony, S. D. (2008, April 3). A playbook for moving down market. Bloomberg Businessweek. Retrieved from http://www.businessweek.com/stories/2008-04-03/a-playbook-for-moving-down-marketbusinessweek-business-news-stock-market-and-financial-advice. http://www.businessweek.com/stories/2008-04-03/a-playbook-for-moving-down-marketbusinessweek-business-news-stock-market-and-financial-advice.
3. Barkin T.I., Hertzell O.S., Young S.J. Facing low-cost competitors: Lessons from U.S. airlines. McKinsey Quarterly 1995, 4:86-99.
4. Berman B. Applying yield management pricing to your service business. Business Horizons 2005, 48(2):169-179.
5. Berman B. Competing in tough times 2011, Financial Times Press, New York.
6. Bernard, A. B., & Koerte, P. (2007, February 1). Strategic responses to multiple dimensions of low-cost country competition (Working Paper No. 2008-43). Dartmouth, NH: Tuck School of Business.
7. Best TVs. (2013, March). Consumer Reports, 16-27.
8. Bustillo, M., & Martin, T. W. (2010, April 28). Beyond the big box: Wal-Mart thinks smaller. Wall Street Journal, p. B1.
9. CAPA Centre for Aviation. (2014). Profiles: Southwest Airlines. Retrieved March 4, 2014, from http://centreforaviation.com/profiles/airlines/southwest-airlines-wn. http://centreforaviation.com/profiles/airlines/southwest-airlines-wn.
10. Cassano, E. (2012, January 1). How William Wang promotes a culture of innovation at Vizio. Smart Business. Retrieved March 4, 2014, from http://www.sbnonline.com/article/how-william-wang-promotes-a-culture-of-innovation-at-vizio/. http://www.sbnonline.com/article/how-william-wang-promotes-a-culture-of-innovation-at-vizio/.
11. Cody T. Cross-border M&A: China's enthusiasm for U.S. deal wanes. Mergers and Acquisitions 2012, 47(1):32-33. 43.
12. Edwards, C. (2010, April 22). How Vizio beat Sony in high-def TV. Bloomberg Businessweek. Retrieved March 4, 2014, from http://www.businessweek.com/magazine/content/10_18/b4176051946906.htm. http://www.businessweek.com/magazine/content/10_18/b4176051946906.htm.
13. Engardio P. Flat panels, thin margins. Businessweek 2007, February 26, 4023:50-51.
14. Finney, P. B. (2006, November 14). Loading an airliner is rocket science. The New York Times, p. B1.
15. Gary L. Dow Corning's big pricing gamble. Strategy and Innovation 2005, March 7, 2(6). Available at http://hbswk.hbs.edu/archive/4677.html.
16. Gluckman R. Every customer is always right. Forbes 2012, 189(9):38. 40.
17. Kachaner N., Lindgardt Z., Michael D. Innovating low-cost business models. Strategy and Leadership 2011, 39(2):43-48.
18. Khanna, T., Palepu, K. G., & Andrews, P. (2012, May 25). Haier: Taking a Chinese company global in 2011 (Case No. 712-408). Boston: Harvard Business School Publishing.
19. Kumar N. Strategies to fight low-cost rivals. Harvard Business Review 2006, 84(12):104-112.
20. Kumar N., Steenkamp J.B. Private label strategy: How to meet the store brand challenge 2007, Harvard Business School Press, Boston.
21. Maitland E., Sammartino A. Flexible footprints: Reconfiguring MNCs for new value opportunities. California Management Review 2012, 54(2):92-117.
22. Miller S. Vizio. Brandweek 2007, 48(30):22.
23. Porter M. Competitive strategy: Techniques for analyzing industries and competitors 1980, The Free Press, New York.
24. Porter M. Why being unique is better than being the best 2011, Harvard Business School Press, Boston.
25. Ritson, M. (2008, August 27). Aldi feeds off lean times. Marketing. Available at http://www.marketingmagazine.co.uk/article/842055/mark-ritson-branding-aldi-feeds-off-lean-times. http://www.marketingmagazine.co.uk/article/842055/mark-ritson-branding-aldi-feeds-off-lean-times.
26. Ritson M. Should you launch a fighter brand?. Harvard Business Review 2009, 87(10):86-94.
27. Ryans A. Beating low cost competition 2009, John Wiley & Sons, West Sussex, UK.
28. Ryans, A. (2010a). The high stakes of low-cost competition. IESE Insight (First Quarter, No. 4), 21-28.
29. Ryans, A. (2010b, June). When companies underestimate low-cost rivals. McKinsey Quarterly, 1-5. Retrieved May 1, 2014, from http://www.mckinsey.com/insights/strategy/when_companies_underestimate_low-cost_rivals. http://www.mckinsey.com/insights/strategy/when_companies_underestimate_low-cost_rivals.
30. Smithers, R. (2013, April 22). Aldi own-label gin beats more expensive rivals in blind taste test. The Guardian. Retrieved March 4, 2014, from http://www.guardian.co.uk/lifeandstyle/2013/apr/22/aldi-own-label-gin-taste. http://www.guardian.co.uk/lifeandstyle/2013/apr/22/aldi-own-label-gin-taste.
31. Stalk G. Curveball strategies to fool the competition. Harvard Business Review 2006, 84(9):114-122.
32. Steenkamp J.B., Kumar N. Don't be undersold. Harvard Business Review 2009, 87(12):90-95.
33. Tarr, G. (2012, July 2). IHS: Vizio retakes Q1 LCD TV unit share lead. Twice. Retrieved March 4, 2014, from http://www.twice.com/news/tv/ihs-vizio-retakes-q1-lcd-tv-unit-share-lead/3576. http://www.twice.com/news/tv/ihs-vizio-retakes-q1-lcd-tv-unit-share-lead/3576.
34. van Luit, S. (2006, June). Corporate culture: Putting Aldi in a scientific context. University of Amsterdam, 11-12. Retrieved March 4, 2014, from http://www.careers.aldirecruitment.ie/working-for-aldi/the-culture.asp. http://www.careers.aldirecruitment.ie/working-for-aldi/the-culture.asp.
35. Webb, C. (2008, July 26). Aldi's simple recipe for success. The Age. Available at http://www.theage.com.au/business/aldis-simple-recipe-for-success-20080725-3l48.html. http://www.theage.com.au/business/aldis-simple-recipe-for-success-20080725-3l48.html.
36. Zeng M., Williamson P.J. Dragons at your door 2007, Harvard Business School Press, Boston.